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Cracked iPhone: Should You be Worried?

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The US government’s declaration that it has “successfully accessed the data stored on [San Bernardino gunman] Farook’s iPhone and therefore no longer requires” assistance from Apple, ends a six week-long legal clash between the tech firm and the FBI.

But it leaves the issue at the heart of the dispute unresolved: could the FBI have forced Apple to help it unlock the device?

It is unlikely that this will be the last time a law enforcement agency tries to compel a tech company to help bypass security measures.

What are the implications for other cases?

It had been reported that there were about a dozen other cases in which the US Justice Department was pursuing court orders to force Apple to help its investigators.

The highest profile of these was in Brooklyn, New York, where the FBI wanted access to an iPhone belonging to a defendant who had already pleaded guilty to drug dealing.

In that case, a federal judge had rejected the DoJ’s effort to invoke the All Writs Act – a three-centuries-old statute that allows court orders to be issued in circumstances where other laws don’t apply.

The DoJ had launched an appeal, but it is not yet clear if it will continue or drop it. Its decision may be based on whether the technique used to extract data from Farook’s handset can be used in other cases.

The New York case involved an iPhone 5S running the iOS 7 operating system, while the San Bernardino, California case was about an iPhone 5C running the more modern iOS 9. What works against one device might not work against the other.
But assuming the US government will at some point try again to use the All Writs Act to force Apple or some other tech company to circumvent its data protection measures, it may take a Supreme Court ruling to determine whether this is truly within the authorities’ power.

Is there any way to find out how Farook’s iPhone was cracked?

At this point, there is nothing to compel the FBI to reveal how it was done, although Apple is likely to be pressing hard to find out.

The tech firm’s lawyers have already said they would want details of the technique to be made public if evidence from the cracked iPhone is later used at trial.

But it could remain secret. There is scope within US law for the authorities to withhold the source of information if it was supplied to them on a confidential basis, and to protect sensitive intelligence-gathering methodologies.

Should I assume the US authorities can now easily work out any iPhone’s passcode?

Not necessarily.
The court order originally obtained by the FBI had instructed Apple to come up with a special version of its operating system that would have prevented Farook’s iPhone from deleting its data or imposing long lockout periods if too many incorrect passcode guesses were made.

However, the latest court filings do not say that someone else has now done this, but merely that some data stored on the device has been obtained.

Researchers at the cybersecurity firm IOActive had proposed that one way of getting data off an iPhone would be to “de-cap” its memory chips.

The process they described involved using acid and lasers to expose and copy ID information about the device so that efforts to crack its passcode could be simulated on another computer without risk of triggering the original iPhone’s self-destruct tool.

If indeed this is what happened, it is not easy and there’s a high risk of causing so much damage to the phone that the desired data becomes irretrievable.

By contrast, Cellebrite – a data forensics firm that has reportedly helped the FBI with the case – has previously discussed “bypassing” passcode locks rather than trying to deduce the number.

But it is possible that doing this would yield access to only a limited amount of a handset’s data.

One other point is that Apple recently updated its iOS software.

Each upgrade adds security fixes. So, if the FBI has indeed been alerted to a flaw in Farook’s phone’s security settings, that bug may no longer exist in devices that have installed iOS 9.3.

Is there any way to ensure no-one else can read the information held on my handset?

Short of destroying the device, perhaps no.
But you can use encryption-enabled apps to digitally scramble data.

The chat tool Wickr Messenger, for instance, lets you set it so that you have to enter a password each time you log back into the app.

Likewise, PQChat requires typing in a five-digit passcode of its own to get access.

So, even if a cracked iPhone did give up the contents of its text messages, emails and WhatsApp chats, the contents of the apps mentioned above should remain safe.

All this presumes, however, that the authorities do not manage to install spyware on your device. If that happens, all bets are off.

What is the situation in the UK?

As part of her efforts to pass the Investigatory Powers Bill, the home secretary Theresa May has said that tech firms wouldn’t have hand over encryption keys or build backdoors into their platforms.

But the law still makes mention of “equipment interference warrants”.

Campaigners at the Electronic Frontier Foundation have warned that these could be used to force Apple and others to insert new code into a device in order to help the authorities extract data, in a similar manner to the FBI’s earlier order.

The EFF adds that “matching gag orders” would prevent the firms from informing their customers or even their own lawyers about the act.

Equipment interference warrants already exist under the UK’s current law.

And for now, the focus of Apple and other tech firms is getting the Investigatory Powers Bill amended to say that in the future the warrants could only be amended with the permission of a judge.

But were there to be a case where the UK police attempted to coerce Apple to override its protective measures, it might still resist – even if the fact never became public.

BBC

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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ALTON and ATCON Call for Tariff Review and Regulatory Independence

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The Association of Licensed Telecoms Operators of Nigeria (ALTON) and The Association of Telecommunications Companies of Nigeria (ATCON), representing Mobile Network Operators (MNOs) and telecommunication firms in Nigeria, have jointly raised concerns over the current state of the telecom industry.

In a unified call to action, they have urged the federal government to address critical issues such as tariff review and regulatory independence to ensure the sector’s sustainability and growth.

Despite facing significant economic challenges, Nigeria’s telecommunications industry has not adjusted its general service pricing framework upwards in over a decade.

ALTON and ATCON attribute this stagnation to regulatory constraints that have hindered the industry’s ability to align pricing with economic realities.

They argue that the current price control mechanism, which does not reflect market conditions, poses a threat to the sector’s viability and investor confidence.

In a statement released over the weekend and jointly signed by ALTON Chairman Gbenga Adebayo and ATCON President Tony Izuagbe Emoekpere, the associations highlighted a range of challenges plaguing the telecom sector.

These include unsustainable tariff structures, lack of regulatory independence, infrastructure deficits, a harsh business environment, multiple taxation and regulations, prohibitive Right of Way (RoW) charges, inadequate power supply, and vandalism of telecommunications infrastructure.

The industry leaders stressed the urgent need for collaborative efforts between the public and private sectors to overcome these obstacles.

They called for constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Furthermore, ALTON and ATCON emphasized the importance of regulatory independence in fostering a conducive environment for the telecom sector.

They advocated for the sustenance of a culture of independence within the regulatory landscape to safeguard against undue influence and ensure the impartiality of regulatory decisions. Regulatory neutrality and independence, they argued, are crucial for maintaining public confidence and encouraging investment in the sector.

ALTON and ATCON reaffirmed their commitment to working collaboratively with the government to address the challenges facing Nigeria’s telecommunications industry.

They urged the government to prioritize infrastructure development, enhance security measures, and facilitate pricing adjustments to unlock the sector’s full potential.

The call by ALTON and ATCON underscores the pressing need for regulatory reforms and policy interventions to drive sustainable growth and development in Nigeria’s telecom sector.

As stakeholders await government action, the industry remains hopeful that concerted efforts will pave the way for a more resilient and competitive telecommunications landscape.

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Startups

Madica Empowers African Startups with $200,000 Investments Each

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Madica, a structured investment program dedicated to nurturing pre-seed stage startups in Africa, has announced its inaugural investments in three innovative ventures.

Each of these startups is set to receive up to $200,000 in funding from Madica and will participate in the program’s comprehensive 18-month company-building support initiative.

The investment program provides a personalized curriculum, hands-on mentorship, founder immersion trips, executive coaching, and access to Madica’s extensive global network of investors for follow-on funding.

The primary objective of this support is to drive growth and ensure the long-term success of the startups.

Emmanuel Adegboye, Head of Madica, expressed his excitement regarding the investments, highlighting the abundant talent and innovation present in the African tech ecosystem.

He said Madica is committed to supporting African founders who often face challenges in accessing necessary support due to perceptions of risk among global investors.

Madica employs an open application process, collaborating closely with local ecosystem players such as incubators, accelerators, and angel networks to identify and support promising entrepreneurs.

The selection process remains rigorous, with investments made on a rolling basis throughout the year.

With plans to invest in up to 10 additional startups this year, Madica aims to expand the reach of venture capital and founder mentorship across Africa, addressing the existing imbalances in funding availability.

The announcement of these investments marks a significant milestone for the selected startups, providing them with vital financial support as well as access to invaluable resources and networks to propel their growth and success in the competitive landscape of the African startup ecosystem.

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Meta’s Revenue Woes Shake Tech Industry Confidence

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The tech industry faced a wave of uncertainty as Meta Platforms Inc., formerly known as Facebook, delivered a disappointing earnings report that sent shockwaves through the market and dented investor confidence.

Meta’s forecast of weaker-than-expected sales for the current quarter, coupled with plans for higher capital expenditures, rattled investors who were eagerly anticipating robust results.

Shares of Meta plummeted by as much as 19% in after-hours trading to trigger a cascade effect across the tech sector.

The tech-heavy Nasdaq 100 Index experienced a decline of up to 1%, reflecting broader concerns about the health of the industry.

Analysts and investors alike expressed dismay at Meta’s inability to meet revenue expectations, citing uncertainties surrounding the company’s adoption and monetization of artificial intelligence (AI) technologies.

Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors, highlighted the disappointment on the revenue front, overshadowing any optimism about AI adoption.

Questions lingered regarding the efficacy of AI investments and their potential benefits to users, leading to increased skepticism among stakeholders.

The repercussions of Meta’s earnings miss extended beyond its own stock, impacting other tech giants slated to report earnings in the coming days.

Alphabet Inc., Amazon.com Inc., and social media companies like Snap Inc. and Pinterest Inc. all witnessed notable declines, signaling a broader sentiment shift within the industry.

The fallout from Meta’s revenue woes reverberated across the tech landscape, affecting chipmakers, server manufacturers, and software firms. Nvidia Corp., Micron Technology Inc., and International Business Machines Corp. were among the companies affected, as investor concerns over AI investment and revenue growth cast a shadow over the sector’s outlook.

As the tech industry grapples with Meta’s disappointing results, stakeholders are left to ponder the implications for future investments and strategic decisions.

The episode serves as a stark reminder of the inherent volatility and uncertainty within the tech sector, underscoring the importance of diligent risk management and strategic foresight in navigating turbulent markets.

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